Teaching Hospitals Sue HHS to Remedy Medicare Underpayments

A group of prominent teaching hospitals sued the Biden administration, seeking compensation for underpayments of Medicare reimbursements for graduate medical education dating back to 2001.

The lawsuit, filed in the US District Court for the District of Columbia on July 12, challenges a Health and Human Services Department decision not to retroactively correct payments for closed cost reporting years, despite acknowledging its previous calculation methodology was contrary to the Medicare statute.

Plaintiffs include the University of North Carolina Hospitals at Chapel Hill, the University of Chicago Medical Center, and several hospitals in the Yale New Haven Health System.

The ...